Sinopec finds industrial gas flows in China shale

BEIJING Dec 17 (Reuters) - Sinopec Corp (0386.HK: Quote) has struck
industrial gas flows from an exploration well in shale reservoirs
in central China, in the state oil firm's early experiments with
the unconventional gas resource.

Gas was struck at well-111 in Dongyuemiao shale rocks of
Jianghan field, a report posted on the parent company's website
(www.sinopecnews.com.cn) said.

The report did not give further details.

Sinopec has since May 2009 set its sights on unconventional
resources such as shale plays and tight gas as new frontiers for
gas explorations, part of the country's massive push to boost use
of gas following significant discoveries made in the United
States.

But the business remains at an infancy stage, with only study
works under way and a small number of pilot wells drilled.

Sinopec said in May that shale fracturing in its Fangshen-1
well in southwestern Guizhou province was a success.